Congress passed a Russia sanctions bill this week that hands President Donald Trump new tariff powers he could use well beyond his current term. The law's vague criteria on which countries could be hit has lawyers and trade officials warning the authority is open to broad use.
Congress passed a Russia sanctions bill this week that gives President Donald Trump new tariff powers he could use well beyond his presidency, adding fresh uncertainty to a global economy after nearly two years of trade wars. Trump is expected to sign the legislation on Friday, a White House official said.
The law requires Trump to impose tariffs of up to 100% within 30 days on goods from the five largest importers of Russian crude oil or gas, as well as any country that buys Russian energy 30 days after enactment or ranks among the top five helping Russia evade sanctions.
Vague criteria raise concern over target countries
China and India rank among the biggest buyers of Russian oil, but the bill does not name any country or spell out how the top-five lists would be calculated. According to Reuters: "Given the discretionary authority that the president has, it is likely to be abused," said Laura Brank, a lawyer at Bryan Cave Leighton Paisner who focuses on cross-border transactions. Jeannette Chu of the National Foreign Trade Council said Brazil, India, Japan and countries in the European Union are among those speculated as likely targets. China said it opposes what it calls long-arm jurisdiction that lacks a basis in international law, while India warned Washington that new tariffs could affect bilateral ties.
Timing collides with midterm elections
Since returning to office in January 2025, Trump has imposed tariffs of up to 50% on more than 80 countries, though the Supreme Court has struck down many of them for exceeding his authority. But any new duties tied to the Russia bill would land just days before the November midterm elections, when control of Congress is at stake, and could push oil prices higher at a time voters are already frustrated over living costs.
Targeting Russia's war financing
The bill, which passed Congress on Wednesday, aims to deprive Russia of funds for its nearly five-year war on Ukraine. It authorizes sanctions against Russia's energy and defense industries and its "shadow fleet" of tankers used to evade existing sanctions. Moscow said on Thursday that further U.S. sanctions would make it harder to reach a peace deal in Ukraine. The law also gives Trump broad authority to waive tariffs or sanctions for national security reasons, which could let him avoid hitting Moscow or its backers harder simply by notifying Congress.
Source: Investing.com
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